In which of the following situations would the Bank of Canada conduct contractionary monetary policy?

Question 36 options:

A)

The Bank of Canada fears that unemployment is climbing above the natural rate.

B)

The Bank of Canada believes that aggregate demand is growing too slowly to keep up with potential GDP.

C)

The Bank of Canada is concerned that the exchange is below its operating band.

D)

The Bank of Canada is worried that deflation will become a problem.

E)

The Bank of Canada is concerned that aggregate demand may continue to exceed the growth in potential GDP.